State v. Taylor

• Decision Date: 31 January 1893
• Citation: 56 N.J.L. 49,27 A. 797
• Parties: STATE v. TAYLOR.
• Court: New Jersey Supreme Court

27 A. 797

56 N.J.L. 49

STATE

v. TAYLOR.

Supreme Court of New Jersey.

1893.

(Syllabus by the Court.)

Case certified to supreme court for advisory opinion.

Action by the state of New Jersey against Robert Taylor for an alleged violation of the insurance laws. Heard on certificate of facts for an advisory opinion. Judgment for defendant.

The other facts fully appear in the following statement by GARRISON, J.:

This cause was tried before the circuit court, a jury having been waived, upon the following agreed state of facts:

'First. The Commonwealth Beneficial Association is a corporation organized under the laws of the state of New Jersey. A copy of its charter, constitution, and by-laws are hereto annexed.

"Second. Robert Taylor was on October 9, 1892, and for thirty days before that time, the agent, solicitor, and canvasser of the said association, under an agreement with the corporation by which he received from it compensation for getting persons to become members of said corporation, and as such agent, solicitor, and canvasser, at that time and for thirty days previously thereto, in the state of New Jersey, did continually solicit persons resident in said state to become members thereof.

"Third. On October 9, 1892, at Newark, in the state of New Jersey, the said Taylor, acting as agent, solicitor, and canvasser as aforesaid, induced one John Robbins, a resident of said city of Newark, to join said association, representing to him that if he would become a member thereof, and pay one dollar and twenty-eight cents a month, he would get five dollars every week he was sick, and that one hundred dollars would be paid to his family on his death. The said Taylor thereupon collected from the said Robbins the sum of one dollar and twenty-eight cents as dues for such membership, and gave him a certificate and a book, copies of which are hereto annexed, and did at several subsequent times collect from the said Robbins certain sums, as appears from the entries in said book.

"Fourth. The said Robert Taylor was on the 9th day of October, 1892, and during the said time he acted as agent, solicitor, and canvasser of said corporation, a member thereof.

"Fifth. Neither the said Commonwealth Beneficial Association nor Robert Taylor were on the 9th day of October, 1892, or at any time previous thereto, authorized by the secretary of state of New Jersey, or the commissioner of banking and Insurance of New Jersey, to transact the business of insurance in the state of New Jersey.

"Sixth. The certificate of membership.

"Seventh. Copy of by-laws.

"On the foregoing agreed state of facts, the following questions are raised:

"(1) Was the contract made by the Commonwealth Benefit Association with John H. Robbins a 'contract of insurance of any kind * * * or certificate of membership * * * on the life, health or safety of any person,' within the meaning of section 6 of the act of March 8, 1877, as amended by section 1 of the act of April 4, 1889, (P. L. 1889, p. 174;) and did the defendant transact the business of insurance, within the meaning of that act?

"(2) Does an association incorporated under the benevolent associations act come within the prohibition of the insurance laws?

"(3) Should judgment in the case be given in favor of the plaintiff, or in favor of the defendant?

"The foregoing questions are made and stated as presenting a case of doubt and difficulty, and are hereby certified to the supreme court for its advisory opinion.

"David A. Depue, J."

Argued June term, 1893, before BEASLEY, C. J., and DIXON, MAGIE, and GARRISON, JJ.

Hayes & Lambert, for the State.

J. W. Wartman, for defendant.

GARRISON, J., (after stating the facts.)

An act to incorporate benevolent and charitable associations was originally passed in 1844, (P. L. p. 197.) It was re-enacted in the Revised Statutes of 1847, (Rev. St. p. 127,) and again, with unimportant changes, in 1853, (P. L. 355,) and in the Revision of 1875, (Revision, p. 79.) All of these enactments set forth that "the sole and exclusive object of incorporations" thereunder shall be "the relief or support of such of the members thereof as shall by sickness, casualty or other cause be rendered incapable of attending to their usual occupation or calling * * * and also the decent interment of deceased members, or the widows of deceased members, and other charitable purposes." In 1876 a supplement to the act was passed, (P. L. p. 86,) extending its provisions to "persons or associations whose object is to give and extend benevolent and charitable relief to persons who) are not members or incorporators;" and in 1883 (P. L. p. 57) a further supplement provided that "it shall be lawful for associations incorporated under this act to contract with their members to pay death benefits according to the rules or by-laws adopted by such associations and to agree to pay the same to the husband, wife, father, mother, brother, sister or legal representative of such member after his or her death, which contract the...